4. Which of the following is not an investment grade credit rating?*BB+BBB+BBBBBB-
Question
4. Which of the following is not an investment grade credit rating?
- BB+
- BBB+
- BBBB
- BB-
Solution
The credit rating that is not considered investment grade from the options provided is BB+.
Here's a step-by-step explanation:
-
Credit ratings are assessments of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.
-
Credit ratings can be assigned by credit rating agencies such as Standard & Poor's, Moody's, and Fitch.
-
These agencies use letter-based rating systems. For Standard & Poor's and Fitch, investment grade credit ratings are BBB- and above. For Moody's, investment grade ratings are Baa3 and above.
-
Therefore, among the options provided (BB+, BBB+, BBB, BBB-), BB+ is not considered an investment grade credit rating. It is considered speculative grade or "junk" status, indicating a higher level of risk for investors.
Similar Questions
22.Which of the following is NOT a SEBI-regulated intermediary? A. Insurance companies B. Depository participants C. Stockbrokers D. Credit rating agencies
Which of the following corporate debt ratings are ordered in terms of decreasing market interest rate?
elect all that applyWhich of the following are types of investment income?Multiple select question.interestdividendssalariesbonusesrent
Fill in the Blank QuestionFill in the blank question.Certificates of deposit, government bonds, and certain mutual funds are all considered investments.
The investment with the highest risk is _____.A.government bondsB.mutual fundsC.real estateD.stocksSUBMITarrow_backPREVIOUS
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.